Curbing piracy could boost economy

THE RATE of software piracy is at 35%, according to a study by the International Data Corporation (IDC) and the Business Software Alliance (BSA).

To reduce this by 10% over four years would create 1 650 tech jobs, R9 billion in new economic activity and R967 million in new taxes, says the study.

It further notes that were the desired 10% achieved in two years instead of four, it would boost economic activity and tax gains by 34%.

Warren Weertman, director at Bowman Gilfillan and spokesman for BSA in South Africa, says while the piracy rate is staying fairly stable at 35%, the value of software being pirated is increasing.

Weertman suggests software asset management (SAM) for businesses wanting to reduce piracy.

After an audit, companies will then know what software they own. In some cases, he says, companies are actually over-licensed, and paying more than they should be for software.

Weertman also notes that software piracy in the business sector is often committed by SMEs. "The common excuse is the high price of software," he says. In South Africa, the rate of downloading pirated software on the Internet is still fairly low compared to countries with high bandwidth. "People find ways around that, though," he says. It is not difficult to buy a hard copy of pirated software, however, and copies are looking increasingly authentic.

In light of high-quality counterfeit goods, Weertman explains some companies, which buy from less reputable distributors, are in danger of purchasing pirated goods unintentionally.

Again, this issue would be resolved with a software audit.

"I think it`s important that companies adopt SAM principles, and know what software they own."